Correlation Between Melisron and Gilat Satellite
Can any of the company-specific risk be diversified away by investing in both Melisron and Gilat Satellite at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Melisron and Gilat Satellite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melisron and Gilat Satellite Networks, you can compare the effects of market volatilities on Melisron and Gilat Satellite and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Melisron with a short position of Gilat Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melisron and Gilat Satellite.
Diversification Opportunities for Melisron and Gilat Satellite
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Melisron and Gilat is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Melisron and Gilat Satellite Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Satellite Networks and Melisron is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Melisron are associated (or correlated) with Gilat Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Satellite Networks has no effect on the direction of Melisron i.e., Melisron and Gilat Satellite go up and down completely randomly.
Pair Corralation between Melisron and Gilat Satellite
Assuming the 90 days trading horizon Melisron is expected to generate 6.46 times less return on investment than Gilat Satellite. But when comparing it to its historical volatility, Melisron is 3.07 times less risky than Gilat Satellite. It trades about 0.15 of its potential returns per unit of risk. Gilat Satellite Networks is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 213,300 in Gilat Satellite Networks on October 21, 2024 and sell it today you would earn a total of 25,700 from holding Gilat Satellite Networks or generate 12.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melisron vs. Gilat Satellite Networks
Performance |
| Timeline |
| Melisron |
| Gilat Satellite Networks |
Melisron and Gilat Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melisron and Gilat Satellite
The main advantage of trading using opposite Melisron and Gilat Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melisron position performs unexpectedly, Gilat Satellite can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gilat Satellite will offset losses from the drop in Gilat Satellite's long position.| Melisron vs. Azrieli Group | Melisron vs. Alony Hetz Properties | Melisron vs. Amot Investments | Melisron vs. Bank Leumi Le Israel |
| Gilat Satellite vs. Elbit Systems | Gilat Satellite vs. Tower Semiconductor | Gilat Satellite vs. Kamada | Gilat Satellite vs. Delek Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |